Southwest Airlines And AirTran Airways Connect Networks

Southwest and AirTran Finish Connecting Their Networks

Mar 18, 2013

DALLAS, March 18, 2013 /PRNewswire/ -- Southwest Airlines (NYSE: LUV) announced today that it has successfully completed the connection between the Southwest and AirTran networks. Customers are now able to purchase itineraries to the airlines' combined 97 destinations, including international, in one transaction. The newly connected itineraries are on sale now via all Southwest and AirTran sales channels for service starting on April 14.

"We began rolling out shared itineraries in January in a handful of markets, and we've gradually ramped up the initiative where we now connect our entire network across both Southwest and AirTran," said Bob Jordan, Chief Commercial Officer at Southwest Airlines and President of AirTran. "With a connected network, we can offer Customers more itineraries, more destinations, more low fares, and a taste of what's to come once the integration is complete."

Southwest Airlines and AirTran Airways took the first step in connecting their networks on Jan. 26, 2013, by offering a small number of connected itineraries in five markets. On Feb. 25, 2013, the airline launched connected itineraries in 39 cities.

By connecting the Southwest and AirTran networks, Customers may:

Add one or more AirTran domestic flight segments to a Southwest itinerary, using Southwest booking channels (southwest.com, 1-800-IFLYSWA, travel agencies, Southwest's mobile site and apps, and Southwest Airlines ticket counters.)

Book one or more Southwest flight segments connecting to an AirTran itinerary, using AirTran channels (airtran.com, 1-800-AIRTRAN, AirTran Airways ticket counters, and travel agencies.)

Use all Southwest channels to book an AirTran-only domestic itinerary.

Add an international AirTran segment to a Southwest itinerary within a single reservation, through a Customer-friendly transfer of the transaction to AirTran channels for booking, purchase, and ticketing by AirTran.

Earn currency in either loyalty program no matter which carrier they fly. (The currency a Customer earns is determined by the carrier from which they buy their ticket, even if flying on a shared itinerary.)

As is standard with industry "code share" arrangements, the Marketing Carrier's (where you buy your ticket) rules and policies apply to reservations and ticketing. The Operating Carrier's (which airline operates the flight) procedures apply to boarding, seating, and the onboard experience. Southwest is making one exception: any itinerary with a Southwest segment or that is purchased through a Southwest point-of-sale channel will not have bag fees for the first or second checked bag (weight and size restrictions apply.) Customers can find specific details and answers to frequently asked questions by visiting www.southwest.com.

Customers will continue to earn and redeem currency through the frequent flyer loyalty programs of their Marketing Carrier, regardless of the Operating Carrier they travel on. Customers should be enrolled in both Southwest Airlines Rapid Rewards and AirTran Airways A+ Rewards programs in order to earn currency from whichever airline they purchase a ticket. Loyalty Members also have the ability to transfer their currency between the two loyalty programs. For more information about transferring loyalty currency, visit www.rewardsfarther.com.

Southwest Airlines announced plans to acquire AirTran Airways on Sept. 27, 2010, an acquisition that significantly expanded Southwest Airlines' low-fare service to more Customers in more domestic markets, creating hundreds of additional low-fare itineraries for the traveling public. Since Southwest Airlines closed the deal to purchase AirTran Airways on May 2, 2011, Southwest and AirTran Employees have worked hard to facilitate a thoughtful and smooth integration process while providing the same high level of Customer Service that Customers have come to expect. To date, Southwest Airlines has welcomed 30 percent of AirTran Employees to the Southwest Family, has converted 11 AirTran Airways 737-700 aircraft to the Southwest paint scheme and interior configuration, and has transitioned five AirTran Airways-served cities into Southwest Airlines operations.

The process of a full integration of the AirTran Airways 737 fleet into the Southwest Airlines fleet (i.e. paint scheme and interior configuration) and transition to a single ticketing system is a large and complex process that is expected to be completed by the end of 2014. Southwest Airlines realized $142 million of net, annualized, pre-tax synergies during 2012, and expects to achieve $400 million in 2013 (excluding acquisition and integration expenses).

ABOUT SOUTHWEST AIRLINES CO.

In its 42nd year of service, Dallas-based Southwest Airlines (NYSE: LUV) continues to differentiate itself from other carriers with exemplary Customer Service delivered by nearly 46,000 Employees to more than 100 million Customers annually. Southwest is the nation's largest carrier in terms of originating passengers boarded, and including wholly-owned subsidiary, AirTran Airways, operates the largest fleet of Boeing aircraft in the world to serve 97 destinations in 41 states, the District of Columbia, the Commonwealth of Puerto Rico, and six near-international countries. Southwest is one of the most honored airlines in the world, known for its commitment to the triple bottom line of Performance, People and Planet. To read about how Southwest is doing its part to be a good corporate citizen, visit southwest.com/citizenship to read the Southwest Airlines One Report™.

Southwest Airlines

From its first flights on June 18, 1971, Southwest Airlines launched an era of unprecedented affordability in air travel quantified by the U.S. Department of Transportation as "The Southwest Effect," a lowering of fares and increase in passenger traffic wherever the carrier serves. On every flight, Southwest offers Customers the first two pieces of checked luggage (weight and size limitations apply) and all ticket changes without additional fees. Southwest's all Boeing fleet consistently offers leather seating and the comfort of full-size cabins, many of which are equipped with satellite-based WiFi connectivity and a new, eco-friendly cabin interior. With 40 consecutive years of profitability, the People of Southwest operate nearly 3,400 flights a day and serve communities around 79 airports in Southwest's network of domestic destinations. Southwest Airlines' frequent flights and low fares are available only at southwest.com.

AirTran Airways

AirTran Airways, a wholly-owned subsidiary of Southwest Airlines Co., offers coast-to-coast and near-international service with over 600 flights a day to 53 destinations. The carrier's high-quality product includes assigned seating and Business Class. As Southwest continues to integrate AirTran's People, places, and planes into Southwest Airlines, Customers of both carriers may book flights at airtran.com and exchange earned loyalty points between both AirTran's A+ Rewards® and Southwest's Rapid Rewards® for reward travel on either airline.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains forward-looking statements with respect to the Company's integration of AirTran and the connection of the Southwest and AirTran networks. Specific forward-looking statements include without limitation statements related to (i) the expected customer benefits associated with the connection of the Southwest and AirTran networks and the anticipated timeline for implementation of network integration; (ii) the anticipated timeline for full integration of the AirTran fleet into the Southwest fleet, as well as for the transition to a single ticketing system; and (iii) the expected benefits and costs associated with the integration generally. These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its integration of AirTran; (ii) the Company's ability to timely and effectively prioritize its other initiatives and related expenditures; (iii) the impact of the economy, fuel prices, and customer demand on the Company's results operations and business decisions; and (iv) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

This website contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on, and include statements about, the Company"s beliefs, intentions, expectations, and strategies for the future. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "plans," "believes," "expects," "anticipates," "may," "could," "intends," "goal," "will," "should," and similar expressions and variations thereof. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed in or indicated by the Company"s forward-looking statements. Factors that could cause these differences include, but are not limited to, the factors described under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K, and in other filings, the press releases and materials contained on this website. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events, or developments, except as required by federal securities laws.